Judge Overturns CA Junk Fax Law

A federal judge in Sacramento, Calif., has ruled in favor of the parties suing to overturn California's Junk Fax Law.The state passed its own law last year in a direct challenge to the federal Junk Fax Prevention Act. The California law did not carve out an "established business relationship" safe harbor, as did the federal law. "Because of this victory, businesses nationwide will be spared the unnecessary cost and bureaucracy of navigating what would have been grossly conflicting federal and state laws," said Stephen A. Bokat, executive vice president of the National Chamber Litigation Center, an arm of the U.S. Chamber of Commerce, one of those suing the state over the law. Among those benefiting from the ruling are mortgage wholesalers who send out rate sheets to brokers and mortgage brokers who fax marketing materials to real estate brokers.

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